# Block, Inc. (XYZ) — Stock CV

Block, Inc. is a $46.3B technology company. Revenue grew 5.1% over the last year, it keeps 1¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 127.0× earnings — in the most expensive third of its own history.

> Founded in 2009, Block provides payment services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network.

## Identity

- **Ticker**: XYZ
- **Sector**: Technology
- **Industry**: Services-Prepackaged Software
- **Headquarters**: OAKLAND, CA
- **Employees**: 10 205
- **Website**: https://www.block.xyz
- **Market cap**: $46.3B
- **Last price**: $77.05
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $25.0B
- **Net income**: $357M
- **Free cash flow**: $3.88B
- **Net cash**: $5.67B
- **P/E**: 127.0
- **Revenue growth (YoY)**: 5.1%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 55 |
| Growth | 87 |
| Profitability | 21 |
| Health | 93 |
| Quality | 60 |
| Moat | 36 |

## Qualifications (beginner checklist) — 7 of 10 passed

- [x] Revenue growing — +5.1% YoY
- [x] Profitable — $357M TTM
- [x] Profit growing — +36.5% YoY
- [x] Generates cash — $3.88B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $46.3B market cap
- [ ] Not printing shares — +34.0% shares over ~5y
- [ ] Proven track record — 4/5 profitable years
- [x] Financially stable — Altman Z 2.5 — grey
- [ ] Valuation not extreme — P/E 127.0

## Experience (career milestones)

- **FY2024** — Best year on record: $2.90B net income
- **FY2023** — Became debt-free: cash now exceeds total debt
- **Sep 8, 2023** — Block announced that the service disruptions had been resolved and all systems were…
- **Jan 31, 2022** — Block completed its acquisition of Afterpay, an Australian buy now, pay later (BNPL) lender
- **FY2021** — First recorded profitable year: $166M net income
- **FY2021** — Revenue already above $10B: $17.7B in first reported year
- **Dec 10, 2021** — The name change took effect, and Square, Inc. became Block, Inc
- **Mar 2, 2021** — Square reached an agreement to acquire majority ownership stake in Tidal
- **Nov 19, 2015** — Square Inc. became a public company via an initial public offering
- **2014** — The company launched a payroll feature within its Square payment processing system, following the…
- **2013** — Additionally, Block's portfolio includes Cash App, a consumer-focused digital wallet introduced in 2013
- **2010** — Block's payment platform, Square, has been available in the United States since 2010 and the company launched in…
- **2009** — Founded in 2009 by Jack Dorsey, it is the U.S. market leader in point-of-sale systems
- **2009** — The inspiration for Block's first product "Square" occurred to Jack Dorsey in 2009 when his friend Jim McKelvey was…

## Strengths

- High gross margin (46.4%)
- Strong cash conversion — FCF is 15.5% of revenue
- Net cash position after subtracting debt from cash
- Could repay net debt from ~0.1 years of free cash flow
- Interest covered 130.9× by operating earnings

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $17.7B | $166M | $714M |
| FY2022 | $17.5B | -$541M | $5.09M |
| FY2023 | $21.9B | $9.77M | -$50.2M |
| FY2024 | $24.1B | $2.90B | $1.55B |
| FY2025 | $24.2B | $1.31B | $2.42B |

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Source: https://stockcv.com/XYZ — derived from company filings; may be delayed or incomplete. Information, not investment advice.